Welsh Affairs

Debate between Craig Williams and Wayne David

Thursday 3rd March 2022 Commons Chamber

[Wayne David]

I absolutely agree. My hon. Friend has made, and is making, a huge contribution to this debate through his able chairpersonship of the all-party parliamentary group on the shared prosperity fund.

[Craig Williams (Montgomeryshire) (Con)]

The hon. Gentleman is being very generous in giving way, and I will pay a broader tribute to him when I speak.

I do not recognise the hon. Gentleman’s description of issues such as the community renewal fund. We secured 23% of that fund for 165 projects in Wales, which is above and beyond the UK share that we would have got from any European project. Will he reflect on that sharing of the fund and hope that we secure more? When I talk to local authorities, they tell me that they are very welcoming of the schemes and the fact that they engage with them directly rather than through third parties.

[Wayne David]

It is a complicated situation. Initially, we were extremely concerned because, objectively speaking, areas of obvious need were being excluded for no good reason at all. That situation has changed, and I have to say that is because of our strong lobbying. It is very important to recognise that.

If we look across the border, we see that the situation in England is very worrying indeed, because in many cases resources were allocated not on the basis of need, but on the basis of a perverse formula that was concocted to help areas that most of us would agree do not need support. I am concerned about what has happened so far and the implications for the future.

The Government have apparently moved away from a competition mechanism whereby local authorities and others compete against each other. However, given the performance of the community renewal fund, I am worried that we will get another perverse formula that does not recognise what most of us would consider to be objective need. That is what happened with the European funding, but we are concerned that it may not happen with the shared prosperity fund.

My hon. Friend the Member for Aberavon (Stephen Kinnock) touched on my final point about the shared prosperity fund. He said that he was concerned about how it would relate to devolution. It is extremely important that we ensure that different tiers of government—central Government and the Welsh Government—work together. There must be, to repeat the phrase I used earlier, mutual respect between the two institutions. They need to pull together so that resources are used to maximum effect. It worries me greatly that there is, unfortunately, quite a lot of friction between the Welsh Government and central Government. I have to be honest: it seems to me that that is because central Government refuse to co-operate fully with the Welsh Government on economic development. I plead with the Wales Office and central Government to move away from that approach and to recognise that, at the end of the day, our interest is in the wellbeing of the people of Wales. We need to pull together in the interests of all our people, not indulge in petty squabbles and friction, and the onus is on central Government to do that.

It is very important that the Secretary of State issues a clarification today on the shared prosperity fund and sweeps to one side the fog that has descended over the replacement for European funding. We need clarity on what is going to happen in the very near future.

The second issue that I would like to address is the cost of living crisis in Wales. I referred in the Welsh Grand Committee to the Bevan Foundation’s excellent December report, which gave information on poverty in Wales in winter 2021. Two of its conclusions are very worrying. First, it said:

“Households are struggling to make ends meet—Nearly four in ten Welsh households (39 per cent) do not have enough money to buy anything beyond everyday items, up from 33 per cent in May”.

It also concluded that living costs were still rising, stating:

“Households across Wales have seen their living costs increase. More than half have seen the cost of food increase with more than six in ten seeing the cost of their utilities increase.”

As we all know, since that report was written at the end of last year, things have become much more difficult for many families—for all families, in fact—in Wales.

We all know that the fuel crisis is an important part of the general crisis. Unfortunately, the situation in Ukraine and Russia is making it worse—we cannot get away from that fact. I am extremely concerned about how it impacts directly on my constituents. I will give two examples. One constituent recently got in touch with the constituency office in Bedwas, Caerphilly to let us know that she would usually pay £80 a month for her fuel bill but that it has now jumped to £210 a month. That is a 162.5% increase. She told us that she is going to have to choose between heating and eating for her and her child. That is the reality, and that is just one example.

Another constituent said that his combined energy utility bill was £101 a month, but from this March it will increase to £340 a month. That is a huge increase—it is phenomenal. He is a retired gentleman and says that he has a good pension, but even he will find it difficult to make ends meet.

--- Later in debate ---

[Craig Williams (Montgomeryshire) (Con)]

It is a great delight to take part in this debate, and I pay tribute to the hon. Member for Caerphilly (Wayne David) for opening it. I know we all say that there should be a staged item on the parliamentary programme every year, but through the usual channels we seem to have it on an annual basis, so clearly something works, and I hope that that continues long after his retirement. I pay particular tribute to him; his Unionist credentials have never been in doubt and since I have been elected his sage advice and warm words for our United Kingdom have been incredibly welcome. They will be missed on the Labour Benches—although hopefully there are still years to come before then in which he can move the debate.

I echo the words of my right hon. Friend the Member for Clwyd West (Mr Jones) on energy policy and in particular the role of nuclear in Wales. I wish him and other colleagues championing it success—I had better mention my hon. Friend the Member for Ynys Môn (Virginia Crosbie) and her long-haul campaign to deliver nuclear power on Wylfa and Trawsfynydd.

I also echo the points made around the Royal Welsh battle group. We have leaned heavily on our armed forces during covid with military aid in response to civil authorities’ requests, and the strength of the United Kingdom can be seen nowhere better. I know that from my own experience nigh-on two weeks ago, when we called the Welsh Ambulance Service because I was helping a dear lady who had fallen over on Welshpool High Street. Ten minutes later, an ambulance turned up and out jumped a paramedic and a member of our armed forces. It is great to see that support continuing. Clearly it is not sustainable, but that is what our armed forces and the United Kingdom Government are there to do: to provide support where we need it the most.

In this debate more than most, our thoughts are with the armed forces as they forward deploy to support our NATO friends in eastern Europe. The Royal Welsh has done a tremendous job for us in this country during the covid crisis, the floods and other crises; now we lean on it again to ensure the defence of the realm and to support our NATO allies.

I also pay particular tribute, as we have all done this week and in years gone by, to Wales Week. I am sure most Members of the House have been to a Wales Week event this week. Wales Week London—Wales Week world, as it is now—has become a feature of the diary. I pay particular tribute to Dan Langford and Mike Phillips, who are bastions of the championing of Wales, our culture, our heritage and our business and are positive about the opportunities that Wales, the Welsh people and the Welsh business community have. They have brought Governments, communities and businesses together.

I implore the Secretary of State to continue his great work with Wales Week, working with the Foreign Office to ensure that not only is the Welsh flag flying at our embassies around the world every St David’s day, but that business communities and the Department for International Trade are invited and that our businesses are championed at UK level, as they rightly deserve. There were 90 events in London throughout Wales Week—an historic high. I am in no doubt that the whole House will wish Wales Week continued and greater success.

We have heard a bit about the UK shared prosperity fund, and I want to discuss not just the words but the commitments to date surrounding the replacement of European money. I accept the benefit of the doubt given by my hon. Friend—I call him that to reflect St David’s Day—the Member for Caerphilly, and that was kind of him, but this is not just about words. The community renewal fund gives 23% of the UK funding to Wales—way above any Barnettised formula in the past. That is a clear direction of travel. We have secured 7% from the levelling-up fund. Again, that is way above what we would see from a UK Government scheme if we just were just going to honour the commitment.

[Wayne David]

rose—

[Craig Williams]

I fear that this is the last time I call him my hon. Friend; it will be back to hon. Member.

[Wayne David]

If it is indeed the direction of travel that the Government should be generous to Wales, why on earth do they not come forward with some hard figures to prove that assertion?

[Craig Williams]

The hon. Member makes an interesting point given that I have just given him two hard figures. The latest schemes coming out of the United Kingdom Government show that this is not about words, but action—actual funding leaving the Treasury and the levelling-up unit and going into Wales. We have 23% from the community renewal fund going straight into schemes across Wales and 7% from the levelling-up fund—way above any Barnettised formula. The figures are there, so he need not ask for them. Now we need to work together.

The hon. Member for Aberavon (Stephen Kinnock), who is not in his place, talked about an attack on devolution. With the objective 1 funding, we qualified once, we qualified twice, and we continued to qualify. That was not a great thing to continue doing, as countries in eastern Europe managed to use the funding programmes organised by the European Union to grow their GVA and so no longer qualify because their prosperity, skills and poverty indicators were all going the right way. In Wales, we are still under the Welsh European Funding Office. This is not just a political assertion from the Conservative Benches. The Audit Wales, Committees of this House and the European Union itself wanted to know time and again why the European funds that were going to Wales were not getting any better outcomes than countries in eastern Europe—the outcomes that our constituents wanted. I remember during the referendum, when we were on the same page, wondering why the response was so bad in the south Wales valleys.